weekly oybeans na the weekly supply of soybeans. Suppose a spell of unusually good weather occurs, which enables soybean producers to generate more soybeans per acre of land. Show the effect this shock has on the market for soybeans by shifting the demand curve, supply curve, or both. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. Supply Demand 16 Supply Demand 10 20 30 40 50 QUANTITY (Millions of bushels) One of the growers is concerned about the price decrease caused by the spell of good weather because he feels it will lower revenue in this market. As an economics student, you can use elasticities to determine whether this change in price will lead to an increase or decrease in total revenue in this market. Using the midpoint method, the price elasticity of demand for soybeans between the prices of $10 and $8 per bushel is , which means demand is between these two points. Therefore, you would tell the grower that his claim is because total revenue will as a result of the spell of good weather. PRICE (Dollars per bushel)

weekly oybeans na the weekly supply of soybeans. Suppose a spell of unusually good weather occurs, which enables soybean producers to generate more soybeans per acre of land. Show the effect this shock has on the market for soybeans by shifting the demand curve, supply curve, or both. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. Supply Demand 16 Supply Demand 10 20 30 40 50 QUANTITY (Millions of bushels) One of the growers is concerned about the price decrease caused by the spell of good weather because he feels it will lower revenue in this market. As an economics student, you can use elasticities to determine whether this change in price will lead to an increase or decrease in total revenue in this market. Using the midpoint method, the price elasticity of demand for soybeans between the prices of $10 and $8 per bushel is , which means demand is between these two points. Therefore, you would tell the grower that his claim is because total revenue will as a result of the spell of good weather. PRICE (Dollars per bushel)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 1.3CE

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